My thoughts on Prop firms (Some)

Discussion in 'Prop Firms' started by tradinpat, Aug 17, 2002.



    Well I think your degree will help you out. It might not make you a better trader but it will help you land a job with a good firm. Most firms that require no capital will start you out as a "trader assistant". Like Geneva Trading.

    They are one of the hundreds of firms that you could look at. Starting as a trader assistant will teach you a lot about trading with out having to blow a large wad of your own cash.

    But Caro is right, sometimes losing your own money can be the best education in trading.
    #11     Aug 17, 2002
  2. Another big advantage of trading with a prop. group is the chance to learn from successful traders. This can be worth a lot more than lower commissions,especially for someone just starting. Just make sure that if you go with a prop. firm that you are not locked into a long term contract. Read all contracts carefully. visit as many firms as you your gut instinct...good luck
    #12     Aug 17, 2002
  3. Simba



    what else have you found in your search for a suitable prop firm (other than Geneva trading). For example, have you checked out Echo Trade? I am also currently looking at going pro and finding a good prop firm.

    #13     Aug 17, 2002


    I am not looking at Geneva, I just posted that web site to show how many different firms are out there. I too am looking into Echo. The office they have by my house is great. The treaders there are cool and easy to talk to and get along with. I have also just started talking to Don Bright. Then there is a small handful of other firms that do not involve putting up any capital that I am talking with right now. At the moment I like Echo the most.
    #14     Aug 17, 2002
  5. axehawk


    You have the right idea. BTW, I completely disagree with CaroKann's advice. If you lose the firm's $$$ and go in the hole, it'll take you longer to get out before you ever see your first paycheck. And the advice of not to short stock is completely off center; you have to learn how trade both ways...with bullets... at a professional firm.

    There are not too many firms left that will stake you, but if you have good credentials, you might want to try ETG, Heartland, or Schonfeld. These places provide training and stake you. ETG's deal kind of sucks, but their training is supposed to be excellent.
    And they look new colllege graduates with ZERO experience to mold themselves.

    Good luck.
    #15     Aug 18, 2002
  6. Anchor suggested that you look for a firm where you don't have to put money up but to avoid a long term contract. I think with virtually every firm you have to make a choice between these two. Either you sign a long term contract or you put money up.

    As far as firms that pay salaries or stipends to traders and take just a piece of profit, there are very few of those anymore (only a few I think).
    #16     Aug 18, 2002
  7. CalTrader

    CalTrader Guest

    If you want to be involved in trading then you need to treat the entire process like a business and ask questions like: who is taking the risk, who is providing the capital, what do you add to the equation etc. Lots of prop firms see you as nothing more than easy money. Others will be a more legitimate opportunity. Anyone who asks you to put capital up is NOT offering you a job - merely the option to pay for training of some sort. This is not unlike the deal the university probably gave you for your degree.

    Good prop firms do exist: there are not many. They will offer you a legitimate employment opportunity coupled with qualifed ethical coworkers who will actually train you. Salary "Draws" are IMHO not equivalent to a legitimate employment opportunity. The key here is to spend time carefully researching and investigating any prop firms you are considering.

    Another option is to go into financial services and get paid a legitimate salary for a few years to learn the ropes and then come back to trading: after a few years you might find that "trading" is only part of an larger investment strategy that you will develop.
    #17     Aug 18, 2002
  8. axehawk


    I was just wondering what firms would make your "good prop firms" list?

    I disagree. You are either a trader or an investor. Working in financial services and cold-calling shleppes all-day will not help you one bit with your future trading. Just my 2 cents
    #18     Aug 18, 2002
  9. <i>Legitimate salary in financial services...</i>

    Now that may be an oxymoron.
    #19     Aug 18, 2002
  10. Interesting views, and thoughts. The last comment was amusing LOL
    #20     Aug 18, 2002